Coinbase launches cbADA and cbLTC on Base network, building out its wrapped token suite for DeFi customers. Company stock hit its 52-week high in doing so, fueled by upbeat analyst upgrades and sentiment reversal.
Coinbase extends cbADA and cbLTC on Base
On June 25th, wrapped Cardano (cbADA) and Litecoin (cbLTC) were added to Coinbase’s Ethereum layer-2 chain, Base. The tokens are backed 1:1 by the respective native equivalent, ADA and LTC, and stored in cold storage at Coinbase.
The feature enables users to use DeFi apps with native tokens on a secure and scalable layer-2 chain.
Base also currently supports a number of wrapped tokens, including cbBTC, cbETH, cbDOGE, and cbXRP.
On opening, reserves stated Coinbase had about 2.96 million ADA and 11,364 LTC in reserve to support cbADA and cbLTC. These reserves are verified through on-chain proof-of-reserves systems, reinforcing Coinbase’s commitment to transparency.
Safe issue and transparency
Coinbase wraps assets using a direct custody model. Tokens are minted only after confirming collateral is held in segregated cold wallets. When users redeem, the tokens are burned, and native assets are released. This system mirrors the proven model used for cbBTC and cbETH.
Coinbase layer-2 Optimism on Ethereum, Base, grew exceedingly rapidly to become the second-largest Ethereum L2 with assets of over $12 billion locked in.
Coinbase stock Reaches 52-week high
The company stock reached a 52-week high this week, reaching an all-time high of almost $369 per share. This was due to a series of analyst upgrades and a rally in the crypto market.
Bernstein compared Coinbase to the “Amazon of crypto services” and consequently raised its target price to $510. Benchmark also raised its estimate from $301 to $421, after the regulation of stablecoins and Coinbase’s market domination.
The passage of the new Senate bill for the GENIUS Act, a bill that encourages stablecoin innovations, fed the hype. Ark Invest increased its holding by purchasing over 4,200 of its ETF shares.
DeFi access expands, investor confidence improves
cbADA and cbLTC launches bring DeFi access to Cardano and Litecoin token holders without manual token bridging. It makes staking, lending, and trading easier on the Base network.
For investors, the stock rally is an extension of confidence in Coinbase’s business model coming together of trading, custody, and DeFi exposure into a single package.
Coinbase’s fortunate move of enabling accelerated wrapped token supply through cbADA and cbLTC and creating solid market momentum further solidifies its position as a leader in the new crypto economy.
